As of Jan. 24,
entrepreneurs can apply for $50,000 grants to start and grow
businesses in St. Louis
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The inaugural
business plan competition, Arch Grants, expects to support the
launch of at least 10 potentially high-growth startups every
year.
The winners
will have access to business networking and mentoring, free legal
and accounting services, collaboration with local universities,
discounts on housing and affordable office space.
A group of St.
Louisans started the grant program to create a more robust startup
culture and infrastructure in the region.
“font-size: 9.0pt; font-family: Verdana;”>“We intend for Arch Grants to be a game-changing program for St. Louis,” said Jerry Schlichter, co-founder and President of Arch Grants. “The city was built on risk-taking and became a center of innovation and industry. We’re inviting a new generation – those already here and those who want to come – to help define the city’s future.”
Typically,
venture capital forces aspiring entrepreneurs to sacrifice a
significant stake in their company in exchange for funds,
Schlichter said. And it’s often limited to those with access to the
startup hotbeds like Silicon Valley, New York and
Boston.
Arch Grants
provides non-dilutive capital and will take no equity.
“This is a city
where $50,000 in capital can go a long way, and we’ve created
partnerships to help it go even farther, as virtually everyone we
have approached is very excited about this initiative,” said Joe
Schlafly, co-founder of Arch Grants.
Current
partners include Innovation Venture Mentoring Service, St. Louis
Regional Chamber and Growth Association, Regional Business Council,
Washington University, St. Louis University, University of Missouri
at St. Louis, Webster University and Harris-Stowe State
University.
After moving
businesses to St. Louis, winners will have the opportunity to
secure a second round of up to $100,000 in funding along with
direct access to St. Louis-based angel investors.
“font-size: 9.0pt; font-family: Verdana;”>And diversity among candidates is a priority, organizers said.
“font-size: 9.0pt; font-family: Verdana;”>“There are a large percentage of white males who are doing startups in the Silicon Valley,” Schlichter said. “We are going to make a special outreach to Historically Black Colleges and Universities and women entrepreneurial organizations as well.”
“font-size: 9.0pt; font-family: Verdana;”>He said they are partnering with Harris-Stowe’s business school for a grant that aims for African-American entrepreneurs.
“font-size: 9.0pt; font-family: Verdana;”>“One of the things that excites me is that there will be many who don’t win,” Schlafly said. “We look forward to working with those who don’t quite make it. The ongoing mentoring could lead into a broad and diverse group of winners, ultimately.”
Many times,
access to capital is one of the biggest hurdles for startup
companies that have viable business plans, said Missouri Governor
Jay Nixon.
“St. Louis
offers a great launching pad for emerging entrepreneurs to have
their ideas take flight,” Nixon said. “It’s exciting for Missouri’s
economy to see initiatives like this that bring together a
public/private partnership in support of the next generation of
entrepreneurs.”
For
more
information, visit www.archgrants.org.
